Joel Simkins

"The reason revenue per position in Detroit appears so high is due to the limited supply of gaming positions and a robust population, with favorable age and income demographics," said Deutsche Bank analyst Joel Simkins.

Average household income within 50 miles of Detroit, for example, is 9 percent above the U.S. average, according to Bear Stearns.

The per-spot results are extrapolated from monthly revenues released by the Michigan Gaming Control Board, regulator of the only three casinos allowed in the city of Detroit.

MotorCity posted revenues of $32.9 million, compared with MGM's $30.7 million.Meanwhile, Greektown did $24.9 million in revenues, which is the amount of money a casino wins from gamblers but before it pays taxes, salaries and other expenses.
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Also, "Detroit operators have developed a better understanding of what incentives drive visitation," Simkins said.

Looking ahead, Simkins expects per-position revenues to grow as Detroit's relatively bare-bones casinos add hotels.That's because, the longer people stay, the more they gamble.

Some point out, however, that as Detroit casinos add gambling capacity to their bigger properties, revenues per machine might actually fall.

The Detroit markets remind another analyst of "Chicagoland," which encompasses nine Illinois and Indiana riverboats.Their revenue per spot averages $378 a day.

Joel Simkins, an analyst with Deutsche Bank, said casino nightclubs are a trend that started in Las Vegas as a way of adding youthful nightlife to gambling resorts, which traditionally draw a middle-aged crowd.

"The Detroit gaming market continues to exhibit sound growth, despite bumping up against difficult comparisons vs. the prior year," said Deutsche Bank analyst Joel Simkins.

And things won't get any easier.

"The fourth quarter (in the gaming industry) should see mid-single digit growth" but, Simkins said, comparisons will be even tougher.

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"The Detroit gaming market continues to exhibit sound growth, despite bumping up against difficult comparisons vs. the prior year," said Deutsche Bank analyst Joel Simkins. And things won't get any easier. "The fourth quarter (in the gaming industry) should see mid-single digit growth" but, Simkins said, comparisons will be even tougher.

Deutsche Bank researchers Mark Mutkoski, Joel Simkins and Joshua Attie note there is wide acceptance of gambling in Hawaii, as long as it happens somewhere else. . . .

Klatzkin and Joel Simkins of Deutsche Bank said they don't think the discussions of moving Coast casinos onto land will have much of an impact on the market.

Casino nightclubs are a trend that started in Las Vegas, said Joel Simkins, an analyst with Deutsche Bank."They're a way to add youth and sex appeal to a casino," he said."Plus, the profit margins on food and beverages are pretty good."

Places like Club Tiki aren't seen as a way to generate more gambling revenue, since high rollers don't usually go to them, Simkins said.